India’s fifth-largest IT services company Tech Mahindra has acquired US-based big data analytics startup FixStream Networks for around Rs 60 crore.
Tech Mahindra has informed the Bombay Stock Exchange, that it will acquire 75 per cent stake in the one year old company which counts large technology companies Cisco Systems, CenturyLink, and DirecTV among its early stage customers.
“This is a good deal for both the companies. We are solving a unique problem,” said 50-year-old Abhinay Padhye, who co-founded the company in May 2013 along with his former colleague at Cisco, Sameer Padhye. They bootstrapped the company with a personal investment of Rs 9 crore.
FixStream has developed a technology platform that mines hidden insights, patterns and unknown correlations from huge amount of data in datacenters.
Experts said the acquisition will help Tech Mahindra to leapfrog in terms of innovation, talent and time to market.
“For Indian entrepreneurs this is a good sign, that small exits can also happen, which is the life blood of the entrepreneurship ecosystem,” said Ravi Gururaj, chairman of the Nasscom Product Council.
In the next five years, experts say at least 40 technology ventures in India could be bought over by large corporations. This month, US-based technology services company Symphony Teleca acquired Bangalore company, Aditi Technologies for around Rs 450 crore-Rs 480 crore in one of the biggest deals in the sector this year.
“We are always evaluating options and looking at startups,” said Aashish Washikar, head of media relations at Tech Mahindra.
The shares of BSE listed Tech Mahindra closed 0.17 per cent up on Monday post announcement of the deal.